The Petroleum Products Pricing Regulatory Agency (PPPRA) says the implementation of Petroleum Industry Act (PIA) does not mean automatic increase in the pump price of petrol in the country.
The Executive Secretary of the Agency, Mr Abdulkadir Saidu, disclosed this in a statement in Abuja on Sunday.
“There is no gainsaying that the PIA signals the implementation of full deregulation of the downstream sector.
“However, it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS.
“The current price will remain until a negotiation with organised labour, which will develop a feasible framework that minimises the impact of a Market-Based pricing policy on the masses, is concluded,’’ he said.
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He further congratulated President Muhammadu Buhari and Minister of State for Petroleum Resources, Chief Timipre Sylva for making the historic Petroleum Industry Act (PIA) a reality.
“The PIA which provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.
“Delivering on the promise to create an environment with a transparent, clear and robust legal and regulatory regime is sure to open up new vistas in the oil and gas industry, and the Nigerian economy,’’ he said.
He added that the implementation of the PIA would foster greater investment in the sector.
“It will also lead to transparency and efficient resource management, provide a more consistent standard of operations and ensure less cumbersome regulatory control of the industry, among other gains,” Saidu added.
He also commended the Federal Government for taking the bold step at resolving longstanding hitches such as the issue of overlapping functions in the regulation of the sector.
Saidu said that the establishment of the Nigerian Upstream Regulatory Commission (NURC) as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) clearly delineates the roles of industry operators and regulators.
Buhari on Aug. 16th passed into law the Petroleum Industry Bill (PIB) and constituted a steering committee for immediate implementation of the Act.
The committee is to be chaired by the Minister of State for Petroleum Resources, Chief Timipre Sylva. (NAN)